UNIVERSITY OF WYOMING
COLLEGE OF BUSINESSDEPARTMENT OF ECONOMICS AND FINANCE
FINANCE 3250, MANAGERIAL FINANCE T/R 2:45PM – 4:00PM CR 103
FALL 2009
Instructor: Hilla Skiba, Assistant Professor of Finance Office: Ross Hall 138
Telephone: Office #: 766-4199
Office Hours: Tuesdays: 1:30pm-2:30pm and Thursdays 9:30am-10:30am E-Mail: [email protected]
Course Description:
Building on the concepts of present value, the focus of this course is on the theory of and methods for corporate asset selection. This course will help students understand how corporations make important investment and financial decisions. The goal of the course is to build a foundation of knowledge in important technical issues such as project mutual exclusivity, capital rationing, risk analysis, and optimal capital structure.
Required Textbook:
Essentials of Corporate Finance, 6th edition, by Stephen A. Ross, Randolph W. Westerfield, and Bradford D. Jordan. The presumption is made that you will have the text material in hand prior to class. Class time will usually be devoted to extensions of the book's coverage, relying heavily on supplemental materials, numerical problems, and mini cases available on the course website.
Recommended Materials:
A financial calculator or TI-83.
Course Prerequisites:
Junior Standing Acct 1010
Stat 2010 (or 2050 or 2070)
Grading and Course Requirements:
Quizzes 10% Homework 15% Attendance 5%
Mid-semester Exam 30% Thursday, October 15th, in class Final Exam 40% Thursday, December, 3:30pm-5:30pm
All assignments are due in class on the day of the due date unless otherwise announced. I will assign final grades so that 100-90% guarantees an A, 89-80% guarantees a B, 79-70 guarantees a C, and 69-60% guarantees a D.
Group work
Course Outline:
The course will closely follow the selected chapters of Essentials of Corporate Finance and class discussions will focus on extensions of these chapters. Part I of the book (Chapters 1-3) is mainly an introduction and will be discussed only briefly in class.
I. Introduction to Financial Management (Chapters 1-3) a. Introduction to Financial Management
b. Understanding and Working with Financial Statements II. Valuation with Known Discount Rate (Chapters 4-7)
a. Time Value of Money b. Valuing Financial Assets c. Midterm
III. Capital Budgeting (Chapters 8-9)
a. Net Present value and Other Investment Criteria b. Making Capital Investment Decisions
IV. Risk Analysis, Asset Pricing, and Cost of Capital (Chapters 10 -12) a. Risk and Return
b. Capital Asset Pricing c. Capital Market Efficiency
d. Weighted Average Cost of Capital and Required Rate of Return on Assets V. Corporate Financing (Chapters 13-15) (Will be covered throughout the course)
a. The Dividend Controversy b. Capital Structure
c. Issuing Securities
d. Comprehensive Final Exam
Attendance Policy: Your participation and attendance at each class meeting is expected, but not required. Attendance quizzes that usually cover a simple question over the day’s lecture are given randomly
throughout the semester. A missed class activity can be made up only with a University authorized excuse.
Academic Dishonesty:
Cases of academic dishonesty will be treated in accordance with UNIREG 802 Rev. 2.
Grade Dispute:
Grade appeals must be submitted to me, in writing, within one week after the assignment is returned to the student. This written appeal should contain a description of the assignment question, student answer, and a detailed objection to the current grade. Please submit this appeal along with the graded assignment that is in dispute.
Disabilities:
If you have a physical, learning, or psychological disability and require accommodations, please let me know as soon as possible. You will need to register with University Disability Support Services (UDSS) in SEO, room 330, Knight Hall, [email protected].
Disclaimer:
